...New Product Development Why is it importand to launch a new product? * A successful new product does more for an organization than any other thing can do * Today a high percentage of sales and profits come from new products (> 30% avg) * The process is extremely difficult * Companies take big risks * Failure rate is quite high (40% avg) * It is fun and exciting! A product can be tangible = Goods A product can be intangible = Services B2B =Business to Business BSC =Consumer Products * New product process does not usually start with a new product idea: it begins with an amount of Strategy * Marketing does not start when the procut is finished: it often starts before ideation * The process is not over when the product is launched=It ends when the new products is successful * Very few are taken to launch and only a small fraction succeed: high risks! * Most new ideas are epresed as lie extensions of existing brands= Parent Brands awareness+values * Most new ideas....are not that new: what’s new for you may not be new for consumers Opportunity An opportunity is a business or technology gap that a company or individual realizes that exists between the current situation and an envisioned future in ordert o capture competitive advantage, respond to a threat, solve a problem or ameliorate a difficulty A Strategy: It is necessary, because it ist he foundation for a new product management A new product development...
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...the last five years, FHE has aggressively introduced new products and has experienced an increase in sales and profits as a result. FHE views aggressive and efficient product development as a means for growth and success. Improving the speed and efficiency of bringing products to market is a critical component of this strategy. As such, the Engineering and Marketing functions are organized into one team which is led by Vice President of Corporate Development and Marketing, Phil Thomas in order to facilitate cooperation during new-product introductions. This new organizational structure has caused overlap and uncertainty around roles and responsibilities in two critical positions within the team, the technical program manager and the product manager. In addition, manufacturing has not been included in the upfront design of the product and is only brought into the process during the testing phase, once the product has been designed and approved. FHE’s Product Development Engineering Manager, Lum Donaldson is reviewing the product development process and looking for opportunities to improve their operations. Currently, the product development process takes 1 year. The process involves Engineering, Marketing and Manufacturing. These three organizations are expected to work closely together during the development process. In his review, Donaldson has seen a bottleneck in the Engineering Services organization where up to 20 new jobs can be in the cue at one time. In addition, Manufacturing...
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...Market definition 8 3.2 Total market size 8 3.3 Market need 8 3.4 Estimated segment size 9 Using a product development process 10 Process application – Opportunity identification and selection 10 Concept generation 10 Concept/Project evaluation 10 Defining the product protocol 11 Conclusion 12 Recommendations 13 References 14 Executive Summary New product development in tourism companies has been a nearly ignored theme in tourism marketing. Research on product development has in major studies handled destinations, development of resorts or sites as a total tourist product. We will aim to identify the major problems as well as key phases of the new product development process in tourism. We will have the challenge to innovate more and more attractive activities to fulfil the customers’ needs for emotional experiences. The theoretical framework is based on the traditional product (and services) development theory, which suggests it to be a process of following stages: idea generation, service concept development and evaluation, business analysis, service development and testing, market testing, commercialisation and post introduction evaluation. We will evaluate the usefulness of the traditional product development model in the direction of creating a service to give adventurous experiences to tourists. INTRODUCTION The service concept, the core product is built on an idea of e.g. hard adventure, soft adventure, water sports etc. The concept is then developed...
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...improve the new-product development process at FHE? I would be remiss if we didn’t start by mentioning that the problem actually started with the Executive Management Team and the CEO. The organization chart shows a lack of cross-functional decision making which results in the inability to integrate operations. I don’t believe it is his place, but Lum Donaldson should suggest that Phil Thomas, vice president of corporate development and marketing who is currently responsible for both areas of marketing and design engineering split his duties and Merle Alison who is obviously in charge of the engineering group be put in charge of design engineering. Phil, needs to do what he does best and lead the marketing team to working with customers to create demand of the company’s products. This way there can be clear direction designed for the coordination of successful introduction of new products. With an extended Executive Committee consisting of Phil Thomas, Merle Alison and Norman Hart there will be more collaboration and better insight to running a new product through the companys processes. Lum Donaldson needs to coordinate the relationship between product managers, technical program managers, and marketing managers. Lum needs to clearly define the requirements necessary at each phase of project development so that the engineering services department is able to produce results in a more efficient manner than is currently possible. The new product development process can...
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...1. What is product management? - The organizational structure within a business that manages the development, marketing and sale of a product or set of products throughout the product life cycle. It encompasses the broad set of activities required to get the product to market and to support it thereafter. 2. Why is it product management is important in the field of marketing? -Product management is important in the field of marketing so that you can define, develop, deploy and maintain products and services. 3. Give at least 10 breakthrough innovations that change our lives. a. Air conditioner – Cooler than electric fan great for hot climates. b. Electronic Mail – you can get your mail instantly c. Electronic Load – more convenient than prepaid cards because of its cheaper denominations and it is readily available everywhere. d. Mobile Phones – easy to carry than telephone and communicate. e. Digital Camera – easier way to view your picture right after you took it. f. Foldable Umbrella – you can carry it anywhere without any hassles. Fits easily in your bag. g. Automobiles – more easy to use for starters because of its automatic transmission/ h. Play Station Portable – you can carry it anywhere and you can get games just by downloading it. No need for Cd’s i. Washing Machine – easy way to wash clothes. No need to use your hands. j. MRT/LRT – easiest way to roam around Manila without getting caught...
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...model for NPD: "The New Product Development Cycle" The NPD cycle is a circular arrangement of product development stages that result in the commercialization of new products. The stages for NPD consist of planning, design and prototype, production and pilot production, distribution, sales and marketing, and after sales servicing stages. Although there is a logical progression through the stages, after a product is developed, the cycle is continuous in order to promote improvement. Different phases of the projects rotate through the NPD cycle at the discretion of senior management. Planning Planning stages of NPD project are usually geared toward international business when feasible in order to increase geographical markets and market potential. With an increased market potential, the NPD investment decisions become more salable (Terpstra & Sarathy, 1991). Concept development occurs during the planning stages and includes new product and process ideas from many sources. Inputs from all areas of the organization, customers, noncustomers, suppliers and external research organizations are taken into consideration for new product concepts. The organization constantly expands its knowledge base and access to information to increase the number of new product and process ideas considered for development. Instituting procedures and incentives that encourage innovation and input from all parts of the organization continually increase the number of product concepts considered...
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...Briefly describe and explain a classic ‘new product development process’ (NPD) and then propose a developed ‘business analysis’ to justify the decision of your group to launch or not launch a DVC brand in year 7. Within that analysis and justification and using suitable data, make some mention of the product life cycle, the BCG matrix, opportunity cost, and risk. Finally, provide a critical assessment of the value of this classic ‘NPD process’ to both TMG! and to the ‘real world’ of consumer durables. The new product development process (NPD) is the process when a company decides to develop and introduce a new product into the market. NPD is important and crucial for all the organisations. The consumers play a major role in this process because this process is carried out keeping the needs and the preferences of the consumers in mind. The NPD process consists of eight stages and only then the new product is brought into the market. These eight stages consist of Idea generation, idea screening, concept development and testing, marketing strategy and development, business analysis, product development, market testing and commercialization. The company may decide to introduce the product in an existing or a new market. This decision depends on the type of product and the type of market. Ansoff matrix gives a better understanding about the relationship between the product and the market. Ansoff matrix is a tool used by the marketing departments of the companies as a general strategy...
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...Marketing Techniques | Summary of how Alton Towers use the technique | Summary of how Nivea use the technique | Comparison (what are the differences, similarities etc. in their approaches | Market Penetration | Alton towers have used market penetration in many ways. They have used this technique by putting in new rides every now and again which would attract more and more customers as well as the customers they already have. They also do the themes according to the events such as Halloweens, bonfire nights etc. they also have shops at the end of each ride which is another way of market penetration as people would want to buy their own pictures or even souvenirs of that ride. One last way could be the fast track system where people can skip the queue by paying extra which will help Alton towers gain more profit. | NIVEA lip care has developed the brand through observing styles in the market and matching these with its existing core abilities in skin care. The core products of this range are 'Essential', 'Repair', 'Rose' and 'Sun'. However, NIVEA has extended the product range with:Strawberry and CherryPearl & ShineGold & Shine and Care Gloss & Shine | The way in which they are both similar is they are both themed as Alton towers theme their events according to the different things happening throughout the year whilst NIVEA have also themed their products for example the ‘sun’ was made for the summer.The way in which they are different is Alton towers are based...
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...held by Kelly; six to nine assumptions held by Pat; two to three assumptions held by Cliff; two to three assumptions held by Chris. a. Kelly- the Senior Engineer is perhaps the most realistic of the employees. The statement in the February 19, 2003 email explaining, “I can design one feature completely and make it work by August," is credible (UOP, 2003, p. 17). After all, the same email explains that programming involves much more than key strokes. It involves planning, testing and quality control (p. 17). In the previous February 19, 2003 email to Chris, Kelly explains how difficult it is for the programming staff to maintain existing services and find time for something new (p. 16). While programming staff was dramatically reduced in the year prior, Kelly’s belief might be partially fallacious. If the new project utilized the current programming code or design and need some refinements, it might be possible. In many ways, Kelly makes an appeal to pity, seeking exemption from the requests. Whereas Kelly does articulate the reality of engineering and programming, the processes involved and the timeline, Kelly believes that her meeting with Chris will also result in another argument. This belief...
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...tap into other markets with their product. To add to the challenges of creating new products into new markets, profits are down and the CEO is requesting that all departments except for Sales and marketing cut their budgets by 15%. This summary will help design a plan of action to help AcuScan develop new products and move into new markets which will increase their profit margins and make them a leader in their expertise. Revenue for AcuScan used to be 50/50 when it came to sales and service of existing products. However, today service makes up about 70% of AcuScan’s revenue which is a very low profit margin. To go along with that issue, the CEO is requesting that the majority of departments cut their budget. Chris the VP of of Product Development is overseeing the budget cuts. He hopes and expects that there will be no layoffs associated with the budget cuts. Chris and Pat, the Director of Marketing would like to tap into other markets by utilizing the existing product they already have. Pat, and Chris’ idea is to tap into the retail market by utilizing their security retinal scanning hardware and software. The hopes of providing this to business owners would be able to have the equipment available at their stores for scanning purposes which will provide data about the customer’s needs and wants. The biggest issue that needs to be addressed is that Pat, the marketing Director and Kelly the Senior Engineer for product Development are having a hard time communicating...
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...Marketing We coordinate domestic advertising and marketing at the national and local levels. The goals of our marketing strategy include driving comparable store sales and brand differentiation, increasing our total coffee and beverage sales, protecting and growing our morning daypart sales, and growing our afternoon daypart sales. Generally, our domestic franchisees contribute 5% of weekly gross retail sales to fund brand specific advertising funds. The funds are used for various national and local advertising campaigns including print, radio, television, online, mobile, loyalty, billboards, and sponsorships. Over the past ten years, our U.S. franchisees have invested approximately $2.3 billion on advertising to increase brand awareness and restaurant performance across both brands. Additionally, we have various pricing strategies, so that our products appeal to a broad range of customers. In August 2012, we launched the Dunkin' Donuts mobile application for payment and gifting, which built the foundation for one-to-one marketing with our customers. In January 2014, we launched a new DD Perks® Rewards loyalty program nationally, which is fully integrated with the Dunkin' Donuts mobile application and allows us to engage our customers in these one-to-one marketing interactions. As of December 28, 2013, our mobile application had over five million downloads. Research and development New product innovation is a critical component of our success. We believe the development of...
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...several multinational companies than sold a range of products; another good point to consider is why the company enters new markets with new products?When this happens there must be a certain level of confidence (capital, resources, customer needs analysis etc.) and proper risk assessments with viable solutions in place in order to successfully penetrate new markets. Hi Renne , Great post your definition on growth strategy is very detailed. While I wish to agree with your strategies of the fruit cups, water , milk etc. in the market region since we both share the same view that the marketing strategies to expand on the product development strategies In the Caribbean regions is a good source of market penetration which would also help in the sales and promotion pricing strategies for Berger line products. While I agreed with some of your growth strategies, like the introduction of fruit cups, water and milk in your product development strategy and expanding the market in regions, I think our responses varied. The market penetration strategy you suggested of extending sales to a new age group of toddlers is really a market development strategy as it is the existing product, but for a new market. Good market penetration strategies may include increased advertising, use of vouchers and coupons, sales promotions, competitive pricing strategies and incentives to baby shops and supermarkets to carry the Berber line of products. Your suggestion of...
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...technological changes etc. and the organization’s market share got squeezed down to close to half of the previous figure as a result of their futility in creating new & advanced products right on time, severely harming their brand reputation. However, Medtronic regained their market & product leadership from the late 1980’s through the timely invention of a path-breaking, rate responsive pacemaker named Activitrax, followed by a thorough revamp of their incorporated processes and systems. The gross lack of coordination plaguing the company’s new product development process, resulting directly into the failure to respond fittingly to the market demands or changes, was gradually got rid-off via inculcating the management philosophies (like, assigning highest priorities to the commitments made, creation of a sense of urgency, fetching greater employee productivity, unifying the management and employees etc.). New performance milestones (cycle time, unit product costs, innovative products and product quality) were also set in place with an aim to alleviate the new product development process. A whole new set of processes pertaining to speed of product development cutting through the ‘new idea’ clutter was developed. The new processes were also related to the creation of product platforms, in which a single product can be altered into creating multiple derivatives, thus...
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...to a commodity based market. Corning did not know if they wanted to be in this market. Some of the internal technical leaders were willing to turn away from this market claiming Corning developed high margin and highly technical products. Mean while sales and marketing were pushing hard to win new work in these fields disregarding the fact that Corning was not designed to compete in a fast moving commodity market. So, although sales were down Corning still relied on making their profits with out competition pressures. They relied on patents, technical know how and substantial capital investment joint. Corning started to see problems when its sales force started to focus on volume of sales without a concern for gross margins. The Sales group booked as many orders as they could to meet sales goals. Sales were giving away the store, claimed manufacturing. Marketing was just as bad. They projected a market for a product, had manufacturing make samples and spend on capital investment, only to come back later and say the market is not ten million, but, one million. Marketing claimed manufacturing was to slow to react to market conditions. Marketing clamed Product Development wasted time, up to seventy percent of product roll out was spent on process development. What happened was the trust that is necessary for departments to be able to work closely together went away. Through all of this lack of leadership, the company still held monthly meetings. Represented at these meetings in many...
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...steps in the new product development process. • Step 1: Idea Generation – Begin from many sources: suggestions from customers, the sales force, R&D specialist, competing products, suppliers, retailers, and independent inventors. • Step 2: Screening – Separate ideas with commercial potential from those that cannot meet company objectives. – Some organizations maintain checklists of development standards in determining whether a project should be abandoned or considered further. – These checklists typically include factors such as product uniqueness, availability of raw materials, and the proposed product’s compatibility with current product offerings, existing facilities, and present capabilities. • Step 3: Business Analysis – A product idea that survives the initial screening must then pass a thorough business analysis. – This stage consists of accessing the new product’s potential market, growth rate, and likely competitive strengths. • Step 4: Development – Financial outlays increase substantially as a firm converts an idea into a visible product. – The conversion process is the joint responsibility of firm's development engineers, who turn the original concept into a product, – and its marketers, who provide feedbacks on consumer reactions to the product design, package, color, and other physical features. • Step 5: Test Marketing – Many firms test market their new-product offerings to gauge consumer reaction. – The purpose is to verify that the product will perform...
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